>> this strain of libertarianism that is going through both parties is a dangerous thought. >> he is making a big mistake, picking a fight with other republicans. >> if he cared about this country maybe he would not be in this give me all money you have. >> today federal spending. >> i'm probably the most fiscally conservative member of congress. >> washington politicians care about bringing home the bacon. >> we've been doing that for too long. say anything, do anything, get elected first, then deceive the
people. >people. >> as for chris christie, i will do everything i can in my little way to make sure he is not the nominee. neil: and these are republicans talking about the republicans, the presidential election is still more than 3 years away, a look at a grand old party food fight, we got the guy who aims to stop it. welcome, i am neil cavuto. scott walker knows a thing or two about dealing with angry critics, in his case, they were so worked up they tried to throw him out of office. i was with him during that saga over his right to work law. polls show that walker is coasting to a likely easy reelection now, but difference with governor walker experienced then and what to g.o.p. stars are engaging in now that
republicans united behind scott, great scott, that is what worries this former political lightning rod turning uniting party elder statesman, he is younger than me, his party is in a disruptive case. if not careful, walker fear its could ruin republicans' chances of retakes the white house, to governor who said he is doing everything he can to make sure none of that happens, very good to have you. >> good to be with you. you are right, you were there. in the heightth of recall in first. neil: it was amazing i never you knew so many people driving by us in madison had creative ways to curse at you. and me, but that was then, this is now, what do you think what is going on with what some call soul certaining in your party -- searching in your parties there others say worse.
>> a healthy debate on important issues is healthy. who concerns me is this appears to be moving toward 2016, we have far too many elections coming year, we have 36 governor races, 22 republicans like myself, we have to maintain the house, we have a very real opportunity if we don't squander it to get u.s. senate back in republican hands again. it is time to focus on 2014. neil: others say, in party that et ceterit's not about winning l costs but whether the win is worth it, what do you make? >> i think you could win, and keep your principles in tact. we didn't back away. we took the case early on, in 2011, your poll numbers were in
mid 30s but we kept bringing the case over and over again. and finally, brought the case, the choice was between the big government union bosses or hard working taxpayers, we made the point that we were standing with the hard working taxpayers, we won, we can do that in other races. we don't have to compromise our principles but doe so with courage. neil: you know sometimes most well-intended referee gets spiked with the ball. when you were talking about and and i am paraphrasing, that race tackles among tea partiers and libertarians who thought you were giving up the fight, what mark levin had to say about your talking about that. >> at least on republican side, iit is too early, a disservice.
we have 36 races for governor next year, 22 of them. >> i think you are doing a i did service. >> too early to do what? stand on principle and fight. is that what he did. scott walker shocks me, who took on unions and took them on in wisconsin had support of the tea party and conservative movement. scott walker could be a example. if what you said is accurate it is sad. neil: do you feel have you been placed in opposition? like hatfields and mccoys, you are either with one sydor other and no one in middle will be tolerated. >> i heard marek say, if he heard it right, i did not say whether chris christie or rand paul of right or wrong, i said if they are focussing on 2016, it is about setting stage for
campaigns in 2016 that is where they are doing a disservice to party and kuh country, we have o win in 2014 so whoever the nominee is, can make the case we're going to win, they said on principle, so 2017, with a republican house, senate and president we could do big bold things we've done in wisconsin and other states. neil: maybe you are trying to deal with this in a diplomatic way. i have talked to all of them, there is some bad blood between some of them, i wonder if it goes for a battle for the soul of the party akin to 1964 struggle. the goldwater-rockefeller battle that was not resolved as far as electing a conservative if you think about it until 1980, when
ronald reagan got the job. do you think that is what republicans risk in this battle for who they are a lose a lot of elections on the way? >> a lot of focus on national security, certainly it is an important issue for homeland security for civil liberties,. neil: on that count, if you don't mind. same question, where are you in that? chris christie said, he has to talk to the families, and friends of the 9/11 victims all of the time. we can't you know debate these surveillance issues, this is about life and death. that matters to him, rand paul comes up with me and says, well there are things we are as a country that we can't compromise and slough over the guys who keep us safe, where does scott walker stand? >> ima straight forward guy, but i tell you they are both right oone hand we need to make sure
we never have a 9/11 again. neil: i understand but are we going too far taking thousands of people's e-mails and phone calls, and linking them to terror when they're not. that -- >> absolutely, i think on one hand you can be dill gent. protects your homeland but, by same taken we need to be diligent. neil: i want to be clear, you are not in rand paul camp that stays stop all of it? >> i think you have to rein it in, protecting homeland security, protecting personal freedom and liberty are not mutually exclusive in debate so far with governor christie and paul say you have to be on one
end or the other, where i and most americans believe you can do both. neil: between the right to work battle, have you changed not only the state but a region, so many other states going your way. take on the unions, risking great voter wrath. that would position you well for presidential run. a lot of people would like to see you make a presidential run, what do you think? >> well, again, our case i mentioned before we have a lot to focus on in 2014, i have to be reelected. i want to see republicans gain more seats in my lin legislate , but party united tackling the fiscal and economic crisis of our country, that is what can continue to see the surge going
forward if we stay focused on fiscal and economic issues that are about reform. we did not just balance our budget but reformed our state and local governance, that put us back on track, that is why unemployment it down, and jobs are up, unlike stating like illinois. where the democrats have taken them in the wrong direction. neil: this would not matter to you whether paul ryan ran for presidency? >> in end, as you know, i was on your show talking about this. probably in statement studio in milwaukee. talking about the one of chief leaders of paul ryan fan club. i am supportive of paul ryan in just about anything he does, he is one of the courageous people in this country. but i'm staying focuses on 15, es on '14
and help paul keep his majority. that is where the reform is. neil: it would not matter you to, you like paul ryan, it would not preclude you from running because he is a good friend and someone you admire were running efficient presidency. >> that is something that too far to the future to talk about right now. i'm focused on next few years, what we can do in wisconsin help encourage other states to get our country going against by getting our states in right direction. neil: i failed. i thought i would get you tired. you would slip up and say something, but that did not happen. >> in the home of harley-davidson, i would love to be the president of harley-davidson motor company but i can not. neil: always a please ear thank you, scott walker. >> good to be with you. neil: here is how bad that irs targeting conservative groups is getting now a democrat is suing,
he is a big democrat at that he has a big problem with the tax man. not what the tax man is doing, the shaky law he is using to do it. one venture card to fly home for the big family reunion. you must be garth's father? hello. mother. mother! traveling is easy with the venture card because you can fly any airline anytime. two words. double miles! this guy can act. wanna play dodge rock? oh, you guys! and with double miles you can actuay use, you never miss the fun. beard growing contest and go! ♪ win! what's in your wallet?
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neil: okay this is enough for me, the plug-ins are getting out of control, this one crosses the line, it a fold up car, usually i joke about not being able to fit into such cars, but this one, i don't think that anyone can. it has so the yo set you off on, one write, freaky, i would not last 30 seconds on l.a. freeways. and one of our followers thanked us for the good laugh. what do you think? does this thing stink? remember you can fold it up in to a tight parking spot, but you are in the car for ever. tweet us. >> you think only conservative are suing irs over the targeting
scandal. one of the most powerful democrats of the house is targets the very law that prompted this irs big brotherring to begin with. using a vague and confusing law on what and who qualifies as tax exempt to do so. let's see what he makes of a prominent democrat cal calling o question the law on which inquiries were based. i don't know if this is such a good thing, not shedding tears for conservative targets but saying that the whole law, on what qualifies is loosey goosey, what do you think? >> i think he is about 54 years behind, he has been in congress since early 2,000s, he was head of democratic congressional campaign committee during tea party uprising he lost his job
as fourth ranking democrat in house of representatives following that elect with steve israel chosen by nancy pelosi to replace him, he does not want into of 501c 4s involved in any political activity unless have you mass disclosure he said they must disclosure donors, like 527s, in america, this is why it is concerning. first of all, irs, it is not that hard of a policy, you cannot be 100% political, you can be 49% and other work. that is the standard. neil: but here is the dressing, i don't assign all sinister political motives to him, i heard this, that the law is very loose. very vague, and i guess what prompted a lot of concern about whether it is being abused is shear number of filers for that
exemption status, a lot of liberal groups did not like that a lot of conservative, tea party groups, saying they were trying to take advantage. but do you think that law itself has lent to that vaguery. >> the law has been around for a long time. neil: the aggressive policing of it? >> but the law has not changed. citizens united opened up to more group to utilize it in different ways, and here is the idea, instead of filing a lawsuit, how about defying social welfare. you know irs admits in their policy memos there no legal definition, not even a court definition, of social welfare, there are examples, well this benefits the common good, this helps the civic community. these are two groups, and i propose, is how can you be one of those groups, and not engage in politics what so ever?
if you are going to engage social welfare, that could include -- >> you know you are right. as soon as you see de-delittle depot light size, where is it with your client, the ones targeted, i am still told not gotten and calls from this administration investigation and all of this that leaves me wondering whether an investigation is going on. i know much of mainstream media has given up on this story feeling it is going no where, is it? >> i think congress -- when they come back, they have to come back aggressively, probably try to make a deal with lois learner who has been tied with soy much more -- so much more even with recess. neil: in other words she has to start singing like a canary. >> she knows too well who is
involved. chief council needs to be called. neil: if she doesn't. latest potential grenade, e-mails, that is a weird no-no, if he does not start talking, it is hard for this it advance, isn't it? >> it will take the lawsuits. like ours, there -- the criminal investigation, what is is interesting different of just choice represents the irs when we sued them, they asked for an extension which is common dealing with this size of a lawsuit. 41 clients, and 8 counts, they said one reason they needed an extension of because of ongoing criminal investigation, the question is, where is that investigation, if not one of our clients today have yet to be contacted. neil: that is weird. >> under this congressman's proposal, not -- there would be no tea party group or media
matters, they would have to file a 527, and he's to do is make it tougher, as if it has not been tough enough to get certified as one of these organizations. neil: wool we'll watch jordan thank you. neil: internet in our schools, all of them? do you think that the government should make them happen or the companies? we clash over whose cash, next. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. it's called hp moonshot. and it's giving the internet the room it needs to grow. is&is gonna be big. hp moonshot. it's time to build a better enterprise. together.
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government make it happen. but word now that facebook and other high-tech corporate cash cows want to do the same thing, the difference is on their dime. not our dime. which seems better to me, to jedediah bila, and jonas on ma makes more sense. government wiring us up or companies? >> leave it to private sector, they do it better than government, it should not be our money, you will have a lot of competition, with facebook and google going at it provides best services. a lot of people who not have access, leave the government out. it is not their job or responsibility,. neil: jonas? >> they don't have internet it is not economically viable to deliver high-speed internet. neil: are they grade schools? >> rural areas, my parents just got high-speed there are 7
telephone poles that serve them, they would have no phone service if the government mandated it. if you want rural people to have phones and internet, free market is not going to solve that problem. neil: you better tell mark zuckerberg he is going full throttle. >> people will get jobs and pay taxes but the down side, they could invent cooler ways to deliver internet cheaper, google is doing something with a balloon,. neil: they will be spying on you as they do it. >> the government redirects that money, why would they do it. >> you know government does something. funds from cell phone tax. add it to few dozen other fees. >> if the government fails, it
is our money that fails. >> you are as troubled as i am, jedediah, jonas is a big deal in media world, he is so cheap he will not help his parents get internet. >> i am getting them internet paying tax on my phone bill. >> barack obama does not know how to fix the problems unless he is taxing someone or spending our money, those are his only two solutions this tax he wanted to do it by circumventing congress, what a surprise. >> the congressman in alaska wanted to to it in 2007 it died on the committee. neil: a big state with a lot of land in between cables. latest health care surprise, you can keep your health care but at ups not your spouse. because ups is planning to remove thousands of significant others to save what it says are very significant cost for health
care coverage under the new law, proof to the law has to go, jedediah yes, jonas noto fast? >> it has to go. i cue that clip of barack obama saying if you like your healthcare, you can keep it, if it is a spouse, it not going to work. but, ups was blunt about saying that obamacare was a contributing factor, they did not keep that private. these are fees we'll incur, we no longer have money that we would have had to provide service. we have to adapt. >> i am jus wondering jonas, ifu are having other problem, you point to health care to sort of take the onus off you? >> i have to tell you, one of the results of obamacare is good, i do not believe a company should pay for your entire family to have health care. neil: have you mentioned this to your spouse.
>> they are doing it because, now the individual -- >> is h she watches. >> the other health care plan are good enough to go -- let's say your spouse works on another company and jumps on ups plane because it is better, why should ups shareholder pace for that. neil: what if the spouse does not work. >> they are only doing it if the spouse can get on another company plan, and chooses not to. >> that is not -- -- >> you were generalizing. >> they are going to save 60 million-dollars. >> shouldn't they? >> well i thought obama care was going to help out the little guy? >> no, it was not. neil: what if the unemployed spouse or not working spouse gets a job. then what? >> they get insurance through their employer. they are supposed to do it voluntarily, it will never happen. >> the workers are going -- >> they get part-time workers.
>> right. they get shifted from full to part time because of fees and buzz ens. >> -- burdens, that is not a reason to change policy. bully. >> companies do not want to provide, they don't' to provide all your kids and wife cheap house insurance. neil: they used to. >> they did that because of tax loophole with a free way to pay someone a bonus, from a old world waworld war ii thing. neil: thank you very much. forget healthcare, now out of control. i still think that nsa has got this whole scandal beat. why is no one investigating them for nonsense they are doing today, and spending this time going after a bank for a meltdown that happened oh, i think i it was -- 5 years ago!
americans, with zero terror ties, es nada, zilch, zippo, yikes, that is what mike buc huck abby said. this is happening now. these -- these abuses grow by almost the hour, we're going back in time. i just think we have it backwards. >> if you remember the enemy of the state, with gene hackman and will smith, at the time you thought this is such amazing science fig, you go back -- science fiction, you go back and watch now we're living it a lot of americans wake up to fact this our government has been more intrusive judge our lives -- into our lives than we could becombe comfortable with.
i'm not a terrorist there is no reason is suspect me, you, i worry about. >> you know, look into these nsa abuses right now, not saying give them a pass, i will say, you know government you were the ones that encouraged them to lend like crazy. i leave that aside, present and clear, and real danger right now are surveillance abuses that blow you away. >> well, you know we're gets close to statute of limitation on some bank issues, if they have not been on fire in 5 years, why are they in flames now in this is another way in which administration has shown that it is more about magic than about policy. because good magic is about the slight of hand, getting your attention to something not where the action is, so you don't pay
attention to where the action really. is we're not going to hear about benghazi or the irs or an investigation about nsa, we should. we're going to talk about a 5-year-old banking scandal, that the government involved itself in by bailing out the banks. if the banks were so criminal 5 years ago, why did we bail them out, that is like giving a bank robber a bag of money, telling him in 5 years we may take a look at this money we gave you. neil: in by the way, government in case of banks saying you are not lending enough, good ini intentions gone awry. we took housing from something you strife strife for to something that is almost a birth right. the real privacy invasions are happening now, and best we get
out of administration is commission that is going to look into it, all i know about commissions, is we get a fine report in a lesser-bound binder it is stuck on a shelf. >> well, not only that but if you heard nsa, it was they essentially said down worry, we're only doing this which is legal, and necessary for your safety. in other words, we say it is legal, it is legal because we say it is, it sounds like something out of alice in wonderland. this has to be offensive to every constitutionally minded citizen. the government does not just let them make up their own words and ignore 4 amendment and constitutional rights of americans for expectation of privacy, that is what we're talking about. 75% of phone calls and e-mails in in country, not those comes from overseas, not those that you know we're having conversation with people in pakistan or maybe iran. but i will have a conversation
with you. that really is none of the government's business, none. neil: you are right about, that always good having you on the terrorist comes not where standing personally hurtful, but i enjoy having you on. mike huckabee. >> i'll make it up to you. neil: i bit you will. dow falling for 6 straight days, but that is not sell-off that dave walker was watching, he was watching another one mee he fears is just starting.
as well. these are the asian exchanges. follow on a fed that might be previewing that tapering will begin. by the end of this year. that time table is still on. these guys are bumming out. whole world is doing it our fed is big at it but the whole world does it. a lot of red arrows here, not just today, as we've been telling you last 6 trading days in a row, markets are worried that ben bernanke will pull the plug on stimulus, it is now seen likely by the end of the year, visitors selling now, but former controller general david walker said don't look at markets, worry more about washington digging us to a deeper hole, that is part of the catalyst in two year surge or high in interest rates. >> unfortunately, it looks like
markets and many others are hooked on tease eri teaser -- t, interest rates, we know they are artificially low, if federal reserve decides it is time to taper, they are seeing strengths in other aspects of the economy, you would think that people would not over react to e10 of sometimes they have. neil: i was wondering, knowing your concerns about the debt, you were way odd o ahead of thi. shouting these interest rates go up, or borrowing costs go up, with 18 trillion on table to say nothing of manyrillions more, the cost to carry that debt is very prohibitive. >> that is correct. look at president's own budget. the president estimates we'll spend over $800 billion a year own rest in 10 years, that is more than we'll be spending for national defense in 10 years.
and what do you get for interest rate? as we say in the south, shine hola, nothing. neil: here is what worries me, maybe you too. soon as it looked like our deficit is going to be $600 billion, i am thinking wow, only? that looks great. but it is piled on to our debt, we think we're out of the danger zone. we're not are we? >> people have a fall sense of security, a news flash, $600 billion plus deficits are a problem. what is more important, looking out. to 10 years, we have a trillion dollar plus deficit, we have got treated three diseases, social insurance programs, he'll carry costs, and -- health care costs and outdated, inadequate tax system, they are playing with
symptoms, they are not treating the disease. disease. disease. by the way. today, we found out our premiums are going up 18% for health care, i thought affordable care act would save us money. neil: its own little debt quagmire, thank you, dave walker. >> my pleasure. neil: get a tax break. then pay i it, it back. in california easier said than done. any last requests mr. baldwin? do you mind grabbing my phone and opening the capital one purchase eraser? i need to redeem some venture miles before my demise. okay. it's easy to erase any recent travel expense i want. just pick that flight right there. mmm hmmm. give it a few taps, and...it's taken care of. this is pretty easy, and i see it works on hotels too. you bet. now if you like that, press the red button on top.
beleaguured small businesses that is millions of dollars they stent and can't payback, is this legal? to our attorneys, ashley, you say this is wrong, not legal, why in. >> i think it is wrong to sort of retro actively apply this tax break, you can't give it and take it back, by blanketing it under constitution, saying that tax makers made the law, they messed up now people should have to pay. that does not make sense to me. >> you are not saying that law itself might have been was wrong to begin with? >> the law was unconstitutional. that is what the lawmakers have said, they said the law wasn't counwasunconstitutional but nowg taxpayers paid back is wrong.
neil: keisha? >> the law was deemed unconstitutional or practice the way it was carried out. neil: the tax credits they got then, they long since exhausted, and they could not use add knaussium, now they have to stop but now they have to go back in time from the beginning it was wrong you payback. >> it is an unfortunate situation, it happens often in government, one thing that came to mind federal sentencing guidelines deemed that judges were all over had to be changed because judges were applying or -- >> this is different. this is scores of businesses that have to pay millions of dollars. >> but the way to look at it, @%y it something is legal, if it
is unconstitutional hey have to correct it. neil: even going after the small businesses that have nothing to do with it. >> sometimes retro actively fixing something that is unconstitutional may hurt the government. >> should i be more concerned about the people than weather government bureaucrats will get screwed? >> yes, the consuing is there to pro -- constitution is there to protect the individual, we have to have rules. neil: what do you do, if to keisha's point screws up. and somewhere there was a big oops. you should be able to find a way to fix it without going back to people who had nothing to do with it. >> you changes law now. neil: from this point forward.
that is what i was thinking. >> we're not going to hurt you retro actively, they did not increase sentences, they went back, they gave lesser sentences, they fixed them that were too harsh and hurting the individual. >> but in that sense that helped defendants that were wrongfully sentenced. someone's disadvantage by how they were practicing it. neil: you know what is weird about this. i understand your position, but it seems that government screws up, taxpayer pay for it. the government botches something, oops we're sorry, go back and pay the money. >> i'm sure they will have a payment plan. neil: i would not pay a penny, you made the mistake, i'm not paying a dime. you would arrest me. >> there will be a lot of lawsuits.
neil: there should be. that is $120 million. more than a few pennies under the couch, there must be away around. >> bottom line, they have to fix it. if people wrongfully benefitted from the practices. neil: i love you, but are on the side of callous bureaucrats and ashley on side of regular hard working people. >> yeah. neil: okay, got you, i'm kidding, thank you very were. it is california. housing is still hot, existing home sales jumping 6.5% in july, median prices up 14% from a year ago, a great time for housing starts, right? maybe not? a bull and a bear. listing home socks, buy or sell, after this. right now, 7 years of music is being streamed.
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neil: you willing to bet housing stocks stay hot? toll brothers gave you amnition today, they are up 6.5%. scott martin and jared levy whether they are still buying, jared you are not, why not? >> well, let's step behind headlines for a second. toll brother said they are cutting orders, down, they are cutting order forecast lower for next coming year. and wells fargo, largest lender in u.s. is cutting 2300 mortgage producing jobs. why are we seeing that weakness in folks that finance the homes? i don't think that toll brothers is going to heck in a hand
basket but now is not the time to buy. neil: scott to bigger home stock issue. they were bued for a while. they are humming along just fine, what say you? >> kb homes, the whole group, to jared a point, interests, housing market. has been luke warm to hot in areas in the country, a lot of the stocks have not performed very well. with toll brothers down year-to-date, down year-over-year, you figure that given housing market verge that that would be the beneficiarity, the housing market, price rise is not a fundamental one this is a supply and demand one. this is not the economy driving home prices up, this is a supply issue. price rise is not sustainable.
neil: retail stocks, buy or sell? the news has not been going, american eagle joining likes of walmart, and macy's and kohl's and saks, singing same sorry tune, business stinks, scott you say so do retail stocks. >> retail will be a tough year. at least for next couple months, the last thing you want to do is get between the consumer and credit card, consumer has been called dead for 3 straight years, and every time they have come out and spent, back-to-school has not been great, perhaps that will lead to a soft holiday, but i think, given fact that we're creating jobs, yes, it is weak, 17,000 a month, wage growth is flat to maybe up a couple percentage points, it is not great. >> jared? >> more specifically don't get you know in between a teen and credit card. you know companies like buckle
and express are going good, i like the gap. i think there are some that will do well, remember, there is no trends, and you know -- >> you are ignoring the guys who say you say there are so many out there you can't make a blanket statement. >> there are good ones, i don't think that retail will be a big standout. but there are good ones gap, and buckles, and express. neil: retail funds just focus on retail, you would avoid them for the time? >> yeah, i think that there is a danger there. i think moving forward in time we have to be careful about blanketing sectors, look at individual stock, not the etf thing it is time to cycle out of those. those,. neil:inally.
hpu . hewlett-packard citing 8% this quarter, announcing leadership changes to right the ship, scott, you argue that company is in very deep ship right? >> doo-doo, doggy poo,. now they are focusing on server storage, i-t, that is a competitive business, if you are in that type of line of work, that benefits buyer, not the seller as far as prices, that will be a tough road to hoe for hp . neil: jared circumstance this a case of a company that condition find a way out? >> -- jared, is this the kate of a company that can't find their way out. >> this is a 5 year term for meg
whitman. a lot of people put a lot of stock in her ability to turn the company, i do not see it. revenues down 8%, and to scott's point, there is no standout pluckproduct, they have half thr eggs in pc business that declined 11% in last quarter. without a product, without a big mission, some sort of a goal, i don't think theyyhave, i think you want to stay away from this stock, i would rather buy high max, they are making google glass. >> you had me going for a while until you mentioned those darn google glasses, thank you very much. we have a lot more tomorrow, you know these nsa revelations are coming out by the day, why doesn't nsa just come out, these are everything that we're doing, we're charting your family, pets and life. but they don't, we get the
surprises every day. tomorrow we look at nsa's credibility, the government's credibility, and how we look to the world. right now we look like a nation of long island ars, that is the truth. overseas. here about the three cs. and find out why one liberal group is pushing to let college borrowers escape loan obligations by filing for bankruptcy protection. and why i think that is a terrible idea. we are watching out for you tonight on "the willis report."